Adar Poonawalla-led Serene Productions has acquired a stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment (Dharma) for ₹1,000 crore. Serene Productions will hold a 50% stake in Dharma, with Karan Johar retaining the remaining ownership.
A Dharma Production statement says Karan Johar as the executive chairman will lead the company, while Apoorva Mehta as the CEO will work with Karan in steering the strategic direction.
The partnership aims to "transform content creation, distribution, and audience engagement" by integrating advanced tech and latest production methods. The companies say they seek to meet the evolving demands of today's digitally savvy consumers while pushing the boundaries of creative storytelling. "This alliance signifies a transformative step toward elevating the Indian entertainment industry on the global stage."
Adar Poonawalla says both companies hope to build and grow Dharma and scale even greater heights. "From its inception, Dharma Productions has been synonymous with heartfelt storytelling that captures the essence of Indian culture. My father dreamed of creating films that would leave a lasting impact, and I've dedicated my career to expanding that vision," says Karan Johar.
Dharma CEO Apoorva Mehta says the partnership with Adar marks a new era where cinema, streaming, and global content converge. "It enables us to explore new avenues in content creation and distribution, elevating the Indian entertainment ecosystem.
Dharma Productions is one of India's leading film production and distribution companies, founded by Yash Johar in 1976 and now helmed by Karan Johar. Recent notable films under the banner include “Kill”, “Bad Newz”, "Rocky Aur Rani Ki Prem Kahani", "Brahmāstra: Part One – Shiva".
India's entertainment & media industry is expected to grow at a compound annual growth rate (CAGR) of 9.48% to reach $73.6 billion by 2027, according to PwC's 2024 report 'Seizing growth opportunities in a dynamic ecosystem'.
With new launches from international players and increasing "pay-lite" options, OTT revenue has surged in recent years, expanding a further 25.1% in 2022 to reach $1.8 billion. This is over six times the revenue of 2018, PwC notes in its Global Entertainment & Media Outlook 2023-2027.
The OTT market will continue to grow at a 14.3% CAGR to produce revenue of $3.5 billion in 2027, the report says. This will be driven by the competitive subscription video-on-demand (SVOD) sector, which accounted for 78.1% of market revenue in 2022. Although subscription service revenue will expand at a 13% CAGR to reach $2.6 billion, advertising-supported services (AVOD) will grow at a higher rate, albeit from a lower base, the report says.
India is also the second-fastest-growing video games market in the world behind Pakistan. India's total video games and e-sports revenue was $1.7 billion in 2022 and is expected to reach $4.2 billion by 2027, increasing at a CAGR of 19.4%. Year-on-year growth in 2022 was 28.8%, a slight slowing of 2.1 percentage points over the previous year.
